Need Of Telecommunication Regulations In Pakistan Economics Essay

The telecommunication system plays a critical and of import function in growing of an economic system because the telecommunication system helps the people of a state to pass on with each other every bit good as supply the employment in that state. The duty of telecommunication system is non merely to supply a medium of communicating to interact with each other instead it facilitates the people in footings of supplying cyberspace, E-mailing, informations communicating etc. As in the instance of Pakistan which is still a underdeveloped state has besides makes appropriate actions sing the telecommunication ordinances. In Pakistan Telegraph and Telephone section is converted into Pakistan Telecommunication Corporation ( PTC ) and it is established in 1991. PTC was the innovator corporation for supplying telecommunication services in Pakistan. At that clip no telecommunication modulating authorization was at that place in Pakistan. Pakistan Telecommunication Authority ( PTA ) was established under the Pakistan telecommunication Act 1996, for the first clip in Pakistan as a modulating authorization in telecommunication. The cardinal motivation behind the constitution of PTA is to modulate and keep the telecommunication services in Pakistan. The cardinal characteristics of PTA is the creative activity of ordinance in telecommunication industry, induction of private sector companies in telecommunication industry, licensing and constitution of Pakistan Telecommunication Company Limited ( PTCL ) under companies ordinance 1984 alternatively of authorities statutory owned company PTC. From 1996 and onwards PTCL was the individual telecommunication service supplier in Pakistan up to 2002. After that in 2003 the authorities of Pakistan has announced the Deregulation policy for telecommunication industry. The cardinal characteristics for this Deregulation policy is to promote the competition in the telecom industry such as new entrants which entails the private investings to accomplish the end of better telecommunication services at lower rates and cut down the monopoly of PTCL as a individual telecommunication service supplier.

Telecommunication Regulation a Public Policy Issue

First of all there is a demand to understand that the telecommunication ordinance is a public policy issue or non? Due to the globalisation and outgrowth of markets and enabled information engineering substructure the function of authorities and establishments has been changed twenty-four hours by twenty-four hours. The economic systems are traveling towards the non-monopolist competition alternatively of a government-owned monopoly in order to acquire the better merchandises and services at lower and cheaper rates. As concerned about telecommunication services, it is a public good because it is meant for the people to pass on with each other. So if one time decided that it is a public good so it needs to be regulated in order to derive certain economic and societal ends. An economic end entails the proviso of investing in the state which implies the addition of employment degree within the state and societal end entails to acquire the quality services to everyone at lower and cheaper footings.

In instance of Pakistan the authorities plays a critical function in telecom sector in order to run into the increasing demands of clients. PTCL have a monopoly of holding a individual telecom service supplier in Pakistan until 2002 and after that the authorities undertakes the determination to let the entryway of private sector telecom services supplier houses in order to get-rid-of monopoly. Due to the entryway of the private companies, the competition among houses additions which helps in doing foreign investings in the state every bit good as provides quality services at lower rates. Through this the private houses besides emphasize, capitalize and focused on those countries within the state which are non yet served by individual monopolistic company ( PTCL ) .

Pakistan Telecommunication Authority ( PTA ) is the modulating authorization who regulates the ordinance and statute law in the telecommunication industry in Pakistan. The cardinal aims of the PTA is keep a just competition among rivals such that the telecom companies can derive their market portion by supplying better quality services to their clients every bit good as encouraging investing and invention. It besides regulates the footings of bear downing high duty against the hapless telecom services and substructure at the disbursal of the telecom clients.

Role of Public and Private Actors

In Pakistan there are a multiple telecommunication operators such as both public and private companies which are giving their services in the state. Due to the high competitory environment, there is more bargaining power of clients in footings of quality services every bit good as duties because of the handiness of multiple replacements. On the other manus if there is low competition in the market so there will be less power of clients to command over the monetary values.


First of all the Government of Pakistan is the chief playing organic structure who undertakes the determination to do a policy sing the telecommunication industry. The function of a Pakistani Government is to do the policies for telecommunication sector in order to run into the increasing demands of clients every bit good as supplying quality telecom services to the general populace and cut down the monopoly of a individual manufacturer of telecommunication operator such as PTCL.


The 2nd chief histrion in the telecommunication industry is the constitution of Pakistan Telecommunication Authority ( PTA ) who regulates the policies and processs of both public and private owned companies. The function of PTA is to do such statute laws and policies related to competition, duties, substructure, licencing etc. in order to supply better telecom services at a sensible monetary values.


At the execution phase, all the statute law and ordinance which have made by PTA is implemented to both public owned company such as PTCL and private owned companies such as Mobilink, Ufone, Telenor, Warid and Zong. Before 2003 there was merely a individual telecom service supplier in Pakistan PTCL but after the debut of Deregulation policy the Government of Pakistan allows the private telecom service supplier companies to run their operations in Pakistan. When the private companies started their operations in Pakistan, the duty of PTA is non merely a control over the monetary values in footings of duties against the service provided but besides maintains a just competition among rivals in such a manner that the telecom service supplier can derive market portion through better quality services against cheaper rates. The determination of doing competitory environment helps to accomplish the economic growing in footings of private investing within the state which entails the addition in employment degree every bit good as aids in accomplishing societal addition in footings of geting better communicating services in Pakistan.